The trail balance of Datto Company as on 31 December 2022 is given

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ACC 315 Assignment 2
First Semester 2023-2024
Total Marks: 7.5
Question.1
The trail balance of Datto Company as on 31 December 2022 is given below:
$
Revenue
Purchases
Distribution costs
Administration expenses
Loan interest paid
$
150,000
60,000
11,200
26,650
1,200
Non- current assets (carrying amount)
105,000
Income tax
Deferred tax at 1 January 2022
Interim Dividend paid
1,500
24,000
4,800
Trade receivables and payables
47.000
31,350
Inventory on 1 January 2022
24,000
Cash and cash equivalents
24,300
Ordinary Shares ($1)
Share premium
10% loan notes
Retained earnings on 1 January 2022
288,500
24,000
9,000
24,000
9,000
288,500
The following is to be considered:
1.Land that cost $ 15,000 is to be revalued $33,000. Ignore deferred tax on the revaluation.
2.The balance on the income tax account represents an over provision of tax for the previous year.
3.Income tax for the current year is estimated to be$9,000. The deferred tax provision is to be
increased to $25,800.
4.Closing inventory is valued at $48,000 at cost for the year. Included in this amount is inventory
that cost $24,000 but during the inventory count it was identified that these goods have become
damaged and a as a result the selling price was reduced. The goods are now believed to have selling
price of $13,500 after incurring rectification costs of $1,500.
Required:
Prepare Datto & Company’s:
1.Statement of profit or loss and other comprehensive income.
2.Statement of financial position and
3.Statement of changes in equityFor the year ended 31 December 2022.
Note:1) All workings should be shown separately
2) It is important to present all the statements in proper format.
3) Marks will be deducted if you do not follow the note 1 and
Marks: This question carries 4. 5 Marks
Question 2.
Write a report on IFRS-2 Share Based Payment. The report should contain the following:
a. Definition
b. Scope
c. Recognition and measurement
d. Measurement guidance.
You may check IFRS Website (www.ifrs.org) and from the Big Four accounting firms’ websites.
(1.5 marks)
Question 3.
Write a report on IFRS- 8 Operating Segments. report should contain:
a. Definition and explanation.
b. Scope
c. Recognition and measurement.
d. Disclosure requirements. (1.5 Marks)
You may check IFRS Website (www.ifrs.org) and from the Big Four accounting firms’ websites
Deadline for Submission: Thursday 30 November 2023 in A4 size paper. (Marks will be
deducted for late submission)